Re:Show HN: Ranking of banks by their likelihood to collapse
by simonebrunozzi on Sunday March 19, 2023 @04:58PM
(#35223545)
You could have provided a link to an explanation to what the Texas ratio is [0], or simply explained that:
The Texas ratio takes the amount of a bank's non-performing assets and divides this number by the sum of the bank's tangible common equity and its loan loss reserves. A ratio of more than 100 (or 1:1) indicates that non-performing assets are greater than the resources the bank may need to cover potential losses on those assets.
I agree the website looks very naive, but not necessarily naive on purpose.
The Texas ratio takes the amount of a bank's non-performing assets and divides this number by the sum of the bank's tangible common equity and its loan loss reserves. A ratio of more than 100 (or 1:1) indicates that non-performing assets are greater than the resources the bank may need to cover potential losses on those assets.
I agree the website looks very naive, but not necessarily naive on purpose.
[0]: https://www.investopedia.com/terms/t/texas-ratio.asp